3G and Structural Transformation in Vietnam

Talk by Anri Sakakibara (Technical University of Munich) as part of the Research Seminar Series of the IOS Economics Department.

The widespread diffusion of the internet holds great potential to accelerate economic growth. One way through which this happens is by reducing information frictions, and lowering search and transaction costs. Despite growing evidence that digital infrastructure can enhance productivity, relatively little is known about its role in shaping the labour market in developing countries. In this paper, we investigate the impact of third-generation (3G) networks on labour market outcomes in Vietnam by exploiting the staggered rollout of the 3G networks across the country. We find that 3G rollout did not increase labour force participation, but reallocated workers into the formal and non-agricultural sectors. We also find evidence that 3G had a larger effect in the structural transformation of the female labour force, providing evidence for the gendered effects of digital innovation on the labour market.